Hi All,
First of all, thank you for this forums dedicated support to helping us younger guys coming in the industry. I've been curious about how long these hiring freezes are going to be running considering the pandemic. I, like many of my peers, are facing this pandemic and thinking it's going to cut our job opportunities deeply. I'm looking to get into CRE capital markets (JLL, CBRE, Eastdil etc.), or onto a LifeCo's RE team (a bit of a stretch most likely), or a REPE (Dream job).
A little bit of background on me: I'm a senior at a top west coast state school, known for engineering but with a solid with business school. Most business graduates seem to end up at a Big-4 doing accounting or consulting, very little IBD, good amount of CRE representation. I'm studying Finance with a minor in Construction Management. The second I saw the markets plunging I was glad that I extended my graduation date to December as opposed to June, thinking I could weather the storm for a little while.
I interned for a large brokerage (JLL,CBRE, Cushman etc.) last summer on their Office leasing team and am currently doing an unpaid remote internship for a very small team of guys based in SoCal who are buying multifamily deals in the mid-west (deals range from 1-8mm). The unpaid internship has been my best work experience yet, underwriting deals, getting exposure to waterfall models, talking with brokers to source new deals etc.
Getting down to the crux of the post- When I graduate in December do you guys foresee me and those like me getting screwed? I have a pretty solid network that I've put in the work to get, (1-2 phone calls per week with alumni for the past 2 years).
Providing it doesn't get cancelled, i'll be interning at a national lender this summer on their multifamily debt team.
Thank you all for your help-stay safe
Okay, first the answer to your question (in TLDR format)... NO, you are not 'toast' (Long answer.. depends on your actions and time horizon).
Some of my most successful friends and peers started their CRE careers in 09/10 right after the 08 GFC. I started a bit earlier, but actually had a major long-term career bump as a result of 08 GFC (but too personal to share here). But, many of their 'paths' and mine are less standard, but that has seemed to be beneficial in the long-run.
So a few points.
Short-term (like 2021/22) could be rough, but maybe not as bad as people think today (too early to know). You may need to take yet another internship versus a true FT job, hopefully a paid one. A lot of UG grads did this in the post 08 world. Good news is that if you kick as in the role, you will probably get hired first when they can afford you (if not with that firm, then a competitor who sees you as an opportunity).
Learning CRE in a down/slow market is better IMHO than in an 'up' market. You see it when it is difficult, and veterans of the industry will respect that. Plus, you probably won't do stupid shit like leasing an expensive car or apartment to show off, as people won't care. Financial discipline pays long-term dividends.
There will be a recovery, when is the question, you can then maneuver your back to your 'path' or something different if you didn't start out where you wanted to. Because of the market shift, no body will penalize you for what you did. You had to work/survive, in fact, it will look good vs. those who just move back in with mom (people already doing that).
Advice, take whatever you can get, do not be picky. Appraisal, special servicing, bank jobs, asset management, even property management (really, not my fav, but better than like working at Starbucks). Jobs like appraisal and asset mngt are really good for learning CRE fundamentals and will be valued by the REPE, lending, brokerage, and other fields more so in these moments than in 'normal' times.
Comp is not your concern, for now. If you had dreams of the six-figure analyst spot (with bonus included), don't feel down or worried if you do not get. Frankly a good internship paying $15-$20 an hour where you learn a ton is better than $50k job that is meaningless (those that I knew that dived into safe corp fin jobs in 08/09 making like $50k are still there, but maybe they love it. I don't know, all I can say is they left the field and are generally making less than their peers who grunted in out in CRE years later).
Learn and prep like a beast. You have a lot of time before graduation, do as much training and learning remotely or however you can. No excuse on this one, I promise there will be jobs for the 'best' its the middle/average people that have to worry. This is why it's really in your control. This was always true, but it is super true now. (in fact, for really good people, these markets can actually increase their demand, funny how that works).
Good Luck!
redever gives great advice so I wholly agree with what he said.
I will simply add on and say that you may not have the option to be picky when it comes to choosing your first role when you graduate. It is uncertain times, so I would really go for whatever role you can get. If you can get more than one, that is great and you'll have options. But there are those out there that will get none, so you should feel lucky if you do. You have plenty of time to prep - Argus, models, OM review, reading, etc - take care of yourself and your mind and the rest should figure itself out come December.
You have your whole career to get to your dream job. Hell, I'm still on my way there and graduated 3 years ago. One step at a time my friend, especially right now.
Resurrecting this thread for an update. I managed to receive a full time offer at an industrial REPE as an analyst helping their asset management/development team. For any Class of 2020 grads reading this: roles are out there, it sucks but after applying to countless jobs and networking internally for every shop to get into first rounds, anything is possible. I began my Real estate journey as a semi-target kid with a low gpa and zero connections.
Class of 2020 got the short end of the stick but the above guidance gave me hope and WSO has provided me with so much guidance throughout the years that has helped me get to this point.
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